4life.com - 4Life Research USA, LLC - very unserious

by Rudolf Faix 21. July 2015 16:54

4life Food SupplementI got at my last article about losing money by participating in the USANA system a comment on Facebook about 4Life Research USA, LLC (4life.com). The comment contained phrases like "how about 4life? have you heard about them? they had a very good system.4ways to earn and very unique! they are a research company", "if you dig on their complan, quite reasonable than any mlm and binary system out there." and "4life is different, very humble and yet generous. Actually you can be a member of without taking out money from your pocket.".

Exact this case shows the difference between promotion and reality. It is true that you can sign-up without paying something but only as a customer without any benefits. For this it does not make any sense to sign-up if you don't like to support them with your personal data. As soon as you like to be more than a normal customer you have to buy from them. It does not matter if you can use their products or not. In this case is already no difference to the other MLM companies which only like to pull money out of your pocket for paying the people on top of the pyramid. Don't forget that you need a lot of people from the base paying for the toys, fun and happiness of the people on the top.

What makes them very unserious?

Take a look at the different prices and packaging from the different parts of the world. You can say now that these are different parts of the world - one is Europe and the other one is an Asian Country and the transport is higher in price. That is not really true the container price is in Asia even cheaper than in Europe. Normally is in Asia everything cheaper than in Europe or USA otherwise are the products nothing else than non-seller. Compare the prices in the table below:

Austria/Europe Philippines

enummi Diamond Kit

  • 1 Entrepreneurial Kit w/D4L bag (English/German)
  • 2 Transfer Factor Tri-Factor (single)
  • 1 4Life Transfer Factor® BCV (120 Kapseln)
  • 1 4Life Transfer Factor® Belle Vie (60 Kapseln)
  • 3 4Life Transfer Factor® Plus Tri-Factor (90 Kapseln)
  • 1 4Life Transfer Factor® Riovida Burst (15 Päckchen)
  • 1 enummi Gentle Facial Cleanser (4 oz)
  • 1 enummi Refreshing Toner (4 oz)
  • 1 enummi Protective Day Moisturizer (1.7 oz)
  • 1 enummi Eye Cream (single)
  • 1 enummi Night Recovery Cream (1 oz)
  • 1 enummi Life C Energizing Serum (single)
  • 1 Transfer Factor ReCall (90 capsules)
  • 1 enummi Intensive Body Lotion NFR (8.5 oz)

400 LP, €460.00 = PHP 22,555.88 = US$ 498.51

Diamond Success Pack 2

  • 6 4Life Transfer Factor Tri-Factor Formula (60 capsules)
  • 6 4Life Transfer Factor Plus Tri-Factor Formula (90 capsules)
  • 1 Compass 2.0
  • 1 Diamond Bag

400 LP, Php35,800.00 = € 727.68 = US$ 788.72

4Life Transfer Factor Plus Tri Factor Formula EU4Life Transfer Factor® Plus™ Tri-Factor™ Formula

4Life Transfer Factor® Plus Tri-Factor (90 Kapseln)

50LP
€ 47.95
PHP 2,351.21
US$ 51.96

4Life Transfer Factor TFPlus USTransfer Factor Plus Tri-Factor

4Life Transfer Factor Plus Tri-Factor Formula (90 capsules)

50LP
PHP 4,584.00
€ 93.18
US$ 100.99

For the case that you'll say now that the compared products are not the same, then take a look at the name at the packaging. There you see that the same product has only another packaging for the same content - only the price is at the Philippines nearly the double from Europe. The funny thing is that the price in the United States - the home country of 4Life Research USA, LLC - is higher than in Europe: $ 61.45! The exchange rate between Euro and US$ got down during the last year. That means the Euro has been coming cheaper, but even this difference does not explain such a price difference. It shows only that the products of 4Life Research USA, LLC are simple overpriced not to mention pure usury.

The national statistics offices tell us the average monthly income. In Austria is the average monthly income € 1,979 (US$ 2,144.68 / PHP 97,039.30) and at the Philippines depending of the region between PHP 19,000 and PHP 20,000 (€ 406.53 / US$ 440.63). You pay in Austria for renting a flat normally more than € 800 (US$ 866.98 / PHP 39,227.61). I have rented at the Philippines a house for PHP 7,500 (€ 152.45 / US$ 165.23).

Can you see now why in the Philippines the product from 4Life Research USA, LLC are non-seller?
While the average European needs to work one week for buying the most expensive starter pack a Philippian needs to work more than seven weeks for it. As there is no possibility to promote the products international (different product names for the same product, different prices for a lot of countries and not all products are in each country available) does it even not make any sense to sign up with 4Life Research USA, LLC from the Philippines or any other country with a similar price-income ratio. The people have in such a case simple not enough money to buying such high priced products.

The same way you get from your first level down-line only 2% but your sponsor gets 25%. This system let you pay a long time before you are able to earn something. That you don't trick the system 50% of the new distributors you enroll have to be in your direct down-line (first level) - there where you earn only 2% from their sales. Such a system is designed for growing fast and financing the upstream people. As soon no more people get enrolled the complete system will crash like each pyramid construction.

The owner of 4Life Research USA, LLC should try their own product "4Life Transfer Factor® ReCall® - Targeted brain support for optimal mental functioning" and revise afterwards their offer. Hopefully they have not used this product already before they have invented their offers.

The domain registration data from 4life.com:

Domain Name: 4life.com
Registry Domain ID: 98224525_DOMAIN_COM-VRSN
Registrar WHOIS Server: whois.markmonitor.com
Registrar URL: http://www.markmonitor.com
Updated Date: 2014-10-14T10:03:29-0700
Creation Date: 2003-05-22T00:00:00-0700
Registrar Registration Expiration Date: 2016-05-22T11:16:00-0700
Registrar: MarkMonitor, Inc.
Registrar IANA ID: 292
Registrar Abuse Contact Email: abusecomplaints@markmonitor.com
Registrar Abuse Contact Phone: +1.2083895740
Domain Status: clientUpdateProhibited (https://www.icann.org/epp#clientUpdateProhibited)
Domain Status: clientTransferProhibited (https://www.icann.org/epp#clientTransferProhibited)
Domain Status: clientDeleteProhibited (https://www.icann.org/epp#clientDeleteProhibited)
Registry Registrant ID:
Registrant Name: Tyler Rasch
Registrant Organization: 4Life Research USA, LLC
Registrant Street: 9850 S. 300 W.,
Registrant City: Sandy
Registrant State/Province: Utah
Registrant Postal Code: 84070
Registrant Country: US
Registrant Phone: +1.8015623600
Registrant Phone Ext:
Registrant Fax: +1.8015623611
Registrant Fax Ext:
Registrant Email: systems@4life.com
Registry Admin ID:
Admin Name: Tyler Rasch
Admin Organization: 4Life Research USA, LLC
Admin Street: 9850 S. 300 W.,
Admin City: Sandy
Admin State/Province: Utah
Admin Postal Code: 84070
Admin Country: US
Admin Phone: +1.8015623600
Admin Phone Ext:
Admin Fax: +1.8015623611
Admin Fax Ext:
Admin Email: systems@4life.com
Registry Tech ID:
Tech Name: Tyler Rasch
Tech Organization: 4Life Research USA, LLC
Tech Street: 9850 S. 300 W.,
Tech City: Sandy
Tech State/Province: Utah
Tech Postal Code: 84070
Tech Country: US
Tech Phone: +1.8015623600
Tech Phone Ext:
Tech Fax: +1.8015623611
Tech Fax Ext:
Tech Email: systems@4life.com
Name Server: authns2.qwest.net
Name Server: authns1.qwest.net
DNSSEC: unsigned
URL of the ICANN WHOIS Data Problem Reporting System: http://wdprs.internic.net/
>>> Last update of WHOIS database: 2015-07-20T16:30:19-0700 <<<

 The Alexa global traffic ranking of the domain 4life.com:

Alexa ranking 4life.com

 

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Suspicious Sites

How you can lose money in Multi Level Marketing by the example of USANA

by Rudolf Faix 20. July 2015 12:49

UsanaThere is no denying that cash is being made at the highest point of the USANA system. In right on time May, USANA Founder Myron Wentz turned into an extremely rich person. He's been at the highest point of the system for a long time, and is a 51% proprietor in the organization. It must be forlorn at the top, in light of the fact that in view of what we can see most partners are not making any benefit by any stretch of the imagination.

To stay dynamic in USANA, you have to burn through 100 points every month, which likens to US$ 117.50 every month or $1,410 yearly. That is as indicated by the USANA associate price list. This cash is your own spending and you don't recover any commission on it, yet the individual who enrolled you may. 

We read through the USANA income disclosure statement, which is in view of information from 2011. The data contained in this archive is exhibited in an arrangement which is predictable with system advertising. The most conspicuous component is a table indicating how much the main 14% of all partners earned in 2011.

Hidden in the fine print at the bottom, it is stated that if all associates are included then:

The average yearly income was $616.72, with nearly one in three earning a check

Would you join a business if your possibilities of winning a solitary installment were under 1 in 3? Regardless of the possibility that you were sufficiently fortunate to win an installment, all things considered, partners who got paid lost $793.28. They spent $ 1,410 to remain active for 12 months and received $ 616.72 in commission. According on their salary divulgence proclamation, USANA won the Network Marketing Today "Best Company" honor 15 years in succession. A framework where 84% of the individuals lose cash may not solid like the "best company" in the business; however they are the best of the three we took a gander at. Losing very nearly $800 a year makes you the best, then why take a gander at the rest?

For later information, we took a gander at the 2014 USANA yearly report. We manufactured the table beneath utilizing information from this yearly report, and also our own estimations: 

USANA 2014 Annual Report
Net Sales: $ 790,471,000
Associates Incentives: $ 349,044,000
Active Associates: 349,000

The numbers tell a natural story. The "direct sales approach" adds an edge of 44.16% to the cost of items. By and large partners lost $410. More than 2 thirds are gaining nothing by any stretch of the imagination. Taking into account the numbers we found in USANAs archives, they may be the best multi-level showcasing organization on the planet. Truth be told, their numbers recommend that 16% of USANA partners made a benefit in 2011. 

 

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Affiliates & MLM Marketing

How you can lose money in Multi Level Marketing by the example of Herbalife

by Rudolf Faix 20. July 2015 10:02

HerbalifeLike others I have calculated that you need to spend at least US$ 370 per month (US$ 4,440 per year) for keeping your membership active at Herbalife. According their own documentation only 1.39% of their members are earning more then they need to spend. Such a system is called "where everybody can succeed"!

At "HERBALIFE Life Changing Products and Business Opportunity" on page 28 we'll find the income disclosure from Herbalife: 

People become Herbalife Members for a number of reasons. A substantial majority (73%) (73%, based on a survey of former U.S. Members by Lieberman Research Worldwide, Inc. (“LRW”) in January 2013, with a margin of error of +/- 3.7%) join us primarily to receive a discounted price on products they and their families enjoy. Others wish to earn part-time money, wanting to give direct sales a try. They are encouraged by Herbalife’s minimal startup cost (at their option, a Mini Herbalife Member Pack [Mini HMP] at (USD) 59.50, or full HMP at (USD) 92.25 (Prices quoted are for the U.S. as of December 2014, and are subject to change. For current prices, see opportunity.herbalife.com), plus applicable sales tax, shipping and handling) and money-back guarantee (If requested within 90 days for the return of the HMP and one year for the return of resalable inventory, upon leaving the business). There is no need to purchase large amounts of inventory or to purchase other materials. In fact, Herbalife’s corporate policy discourages the purchase of sales aids, especially in the first few months of a Membership.

According to the above arguments is my opinion: You only need the right arguments for whitewashing a negative result and don’t trust any statistics you did not fake by yourself.  The start-up costs are small compared with staying active in the system. True to the motto "Hope dies last" many will pay the contribution and hope that at some point they will make some profit with the system from Herbalife. If someone has the possibility to earn more he will not say no to this possibility.

Let us continue at their income disclaimer:

PROFIT ON YOUR OWN SALES: One element of the income a Member can earn is the profit, after expenses, from the resale of Herbalife® products. Members decide for themselves the way they do the business, the number of days and hours they work, the expenses they incur and the prices they charge.

MULTILEVEL COMPENSATION: Some Members (20.1%) sponsor others to become Herbalife Members. In that way, they may seek to build and maintain their own downline sales organizations. They are not paid anything for sponsoring new Members. They are paid solely based on product sales to their downline Members for their own compensation or to sell to others. This multilevel compensation opportunity is detailed in Herbalife’s Sales & Marketing Plan, which is available to all Members online at MyHerbalife.com.
For the 13% of Herbalife Members who are Sales Leaders (Sales Leaders are Members who achieved the level of Supervisor or higher. See details on Herbalife’s Sales & Marketing Plan at MyHerbalife.com. 58.2% of Sales Leaders as of February 1, 2014, requalified by January 31, 2015 [including 41.2% of first time Sales Leaders]) with a downline, the average compensation received from the Company in 2014 was (USD) 5,456. These amounts are before expenses incurred in the operation or promotion of their business.

In the chart below, we summarize the economic benefits available to Herbalife Members in 2014. For most people (89%), the economic benefits resulted exclusively from a discounted price on products they purchased for personal and family use or for resale to others, neither of which took the form of a payment from the Company.

Herbalife Member Levels

The majority of those Members who earned in excess of (USD) 100,000 from Herbalife in 2014 had reached the level of Herbalife’s President’s Team. During 2014, 31 U.S. Members achieved the level of President’s Team. They averaged seven years as an Herbalife Member before reaching President’s Team, with the longest duration being 18 years and the shortest being less than three years.

If we take from the above chart the data then we see that from 554,353 members are only 7,695 earning more in the system from Herbalife than they need to spend (US$ 4,440 per year) - that are only 1,39% of all members! The bitter truth is that all others are only paying into the system.

The sentence "58.2% of Sales Leaders as of February 1, 2014, requalified by January 31, 2015 including 41.2% of first time Sales Leaders" shows additional how difficult it is to keep such a system upright and running. 83,6% of the experienced Sales Leaders before the year 2013 and 58.8% of the first time leader of the year 2013 failed to keep their level or reach their level again during the year 2014. That shows us the quality and or pricing problems of their products that they have too less returning customers.

 

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Affiliates & MLM Marketing

How you can lose money in Multi Level Marketing by the example of Amway

by Rudolf Faix 20. July 2015 06:27

AmwayU.S. MLM companies have to provide an income disclaimer for their promotion. This is forced by law otherwise the participants of their system have the possibility to force the company paying out the promised earnings. In Europe are even not helping such disclaimers. There need to get promises from the promotion fulfilled.

In light of the figures in the Amway pay arrangement, they are letting us know - Less than a large portion of the individuals who join stay "active" and overall, the individuals who stayed "active" and worked the framework, lost cash.

Income disclosure from Amway found on page 11 (IBO = Independent Business Owners):

The average monthly Gross Income for “active” IBOs in the U.S. was $202.

Approximately 46% of all IBOs in the U.S. were “active.”

U.S. IBOs were considered “active” in months in 2010 when they attempted to make a retail sale, or presented the Amway IBO Compensation Plan, or received bonus money, or attended an Amway or IBO meeting. If someone sustained that level of activity every month for a whole year, their annualized income would be $2,424. Of course, not every IBO chooses to be active every month.“Gross Income” means the amount received from retail sales, minus the cost of goods sold, plus monthly bonuses and cash incentives. It excludes all annual bonuses and cash incentives, and all non-cash awards, which may be significant. There may also be significant business expenses, mostly discretionary, that may be greater in relation to income in the first years of operation.

  1. Includes compensation from Amway IBO Compensation Plan and Growth Incentives (GI) Program during 2013.

  2. Approximately 0.31% of IBOs in North America achieved at least Q12 Platinum status (but not Sapphire or higher) in the calendar year ended December 31, 2013.

  3. Approximately 0.09% of IBOs in North America achieved at least Founders Emerald status (but not Founders Diamond or higher) in the calendar year ended December 31, 2013.

  4. Approximately 0.03% of IBOs in North America achieved Founders Diamond or higher in the calendar year ended December 31, 2013.

For average annual compensation and highest annual compensation at all IBO levels, go to Amway.com and search for: Money and Rewards.

A description of the income sheme from Amway gets found in their Business Reference Guide at page 5:

Immediate Income

Your immediate income is the difference between the cost at which you purchase product inventory from Amway or your sponsoring IBO, and the price at which you sell the products to your own customers. This income is realized immediately upon each sale to a customer. For your convenience, Amway publishes suggested retail prices for all products. However, these are suggested prices only, and you are not obligated to charge these prices. Each IBO is entitled to determine independently the prices at which they sell products to IBOs or other customers.

Performance Bonus

Additional income may be earned through the monthly Performance Bonus. The Performance Bonus is driven by sales volume, which is tracked from two sets of numbers – Point Value (PV) and Business Volume (BV) – that are published in connection with each available product or service.

PV is a unit amount (you can think of it as the number of points) assigned to each product. The total PV associated with your monthly sales volume is tracked to determine your Performance Bonus bracket. The higher your PV total, the higher the percentage (up to 25%) used in calculating your bonus (see the Performance Bonus Schedule below).

BV is a dollar figure assigned to each product. The total BV associated with your monthly sales volume is multiplied by the percent from your PV bracket to determine your gross Performance Bonus. Your sales volume, or your PV/BV as it is generally known, is generated by your own purchases, whether for personal use or resale, and by the purchases made by your registered customers.

To figure your gross Performance Bonus, you add the Pass-up Volume from your frontline IBOs (those you personally registered) – both PV and BV – to your personal PV and BV, then make your calculation according to the Performance Bonus Schedule. However, any Performance Bonuses earned by your frontline IBOs, using the same Schedule, must be subtracted from the gross amount to arrive at your net Performance Bonus. In addition, you will at least be at the same percentage bracket as your downline.

Note: Experience has shown that IBOs who register others generally have higher average volume than those who do not.

I have added to the provided table the average sales volume in US$ and the paid commission from the samples. The result is that 1 Point (PV) has the value of US$ 3. The normal mark-up between wholesaler and retailer for the product assortment is calculated from down to up 50% or calculated from up to down 33.33%. Here you see already how Amway is making some extra money because they are giving in sum a maximum of 25% discount.

Points (PV) US$ sales Comm% Comm US$
100 $300 3% $9
300 $900 6% $54
600 $1,800 9% $162
1000 $3,000 12% $360
1500 $4,500 15% $675
2500 $7,500 18% $1,350
4000 $12,000 21% $2,520
6000 $18,000 23% $4,140
7500 $22,500 25% $5,625

To remain active you have at least to buy for a value of US$ 300 – hopefully you are able to resell it. If you take a look at their income disclaimer you'll see that the average income of the IBO's has been US$ 202. With other words each of their IBO's have lost in average US$ 98 per month!

You may have some major difficulty burning through $22,500 every month on sales, yet this gets to be less demanding once you have a down line. Anybody you by and by backer, will "pass up" volume to you. On the off chance that you are new to the framework and figure out how to create enough volume to meet all requirements for a 3% installment, then your supporter will get 3% from you deals (6%-3%). Their supporter will get 3% from your deals (9% - 6%) thus on until the full 25% has been paid.

This "pass up" framework urges individuals to support whatever number newcomers as would be prudent. However there is no motivator to support enlists and help them succeed. The only thing that is in any way important is that cash is being spent. In the event that an individual is losing cash and winning nothing, the cash they spend is as yet sustaining the framework, and sending 25% commission up through the chain of importance.

 

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Affiliates & MLM Marketing

Can You Make Money with Network Marketing?

by Rudolf Faix 19. July 2015 12:40

Pyramid SystemIt is conceivable to profit with MLM, in any case we trust it is profoundly unlikely. In his free eBook "Multi-Level Marketing Unmasked", Jon Taylor found that 99.7% of individuals will lose cash in system advertising. So for each 1,000 individuals who join a system showcasing group, 3 will win more cash than they spend. On the off chance to have 5 effective individuals in your first down line you’ll need to select 1,665 new individuals, so that 5 of them will be successful.

This may be a framework that "anybody can do", but at the same time it's a framework in which, just 1 in 333 individuals are effective. To attempt and comprehend why it is so troublesome for system advertisers to turn a benefit, we can take a closer look into the compensation plan of Amway, USANA, Herbalife and Nu Skin. Not surprisingly the framework for winning cash with every, are harmoniously one of a kind and comparable.

Each MLM has their own adaptation of paying commission and they are all offer comparative qualities. Shockingly we accept that they are organized in a manner that makes it exceptionally troublesome for anybody to turn a benefit in system showcasing. Case in point:

  • You need to "qualify" to procure any commission - You are honored "focuses" when you purchase items. This makes what we see as "manufactured interest" for the items. System promoting individuals are requesting item with a specific end goal to stay "dynamic". They arrange in overabundance of what they would by and by utilization or what they can on offer at a retail edge, which makes them stock heap the items.

  • The vast majority of the cash spent is by individuals - Network showcasing organizations recognize that next to no of their deals are because of retail request. The majority of the item being requested is by individuals for individual utilization (or to fulfill volume portions). Deals are not determined by business sector strengths; they are driven by individuals purchasing for volume targets. On the off chance that almost no cash is originating from outside the system, then the main route for individuals to benefit is to the detriment of individuals in their own particular down line.

  • It is a zero sum game - without natural deals, your up-line can just profit, on the off chance that you burn through cash. The stories you find out about the battling single guardian who is presently a mogul may be valid. Be that as it may they forget a critical point of interest, which is: Every one of those million dollars originated from different individuals from the system who are underneath them in the MLM progression (which is not pyramid paying little mind to how nearly it looks like one). Cash made by one individual from a MLM group, has been lost by another.

  • A System Prone to Negative Incentives - As we already noticed, the main way the vast majority makes any salary in system showcasing, is from marking new individuals beneath them in the framework. When you are in the framework, you're up line will get commission on any cash you spend. It is to their greatest advantage to instruct you to "you are ideal for the group" and to "continue spending that month to month amount". The more you spend, the more they win. They may accept that you can succeed in multi-level advertising, yet in all actuality, they require your cash coming into the framework with the end goal themselves should to succeed.

  • Multi-Level Marketing does not evacuate the center man - Direct advertising organizations will let you know that their organizations are "offering straightforwardly to you". Best case scenario, this is a misguided judgment, even under the least favorable conditions it's a deliberate distortion. You can arrange items specifically from the organization, yet they will pay a commission to the individual who enrolled you and a few others above you in the chain. They will let you know that you can possibly "acquire commission" from your down line. In all actuality you are getting to be another center layer in the conveyance chain between the supplier and your down line.

 

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Affiliates & MLM Marketing

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